Oil remains one of the most influential commodities in the global economy, acting as both a primary energy source and a raw material for petrochemicals. Produced mainly by the United States, Saudi Arabia and Russia, oil prices are shaped by geopolitics, OPEC decisions, inventory levels and economic cycles. Despite the energy transition, global demand remains robust, contributing to persistent market volatility. Oil markets react instantly to political tensions and supply disruptions. Read more to understand how oil pricing mechanisms work, why volatility remains high, and how the energy transition is transforming, though not replacing, this critical resource within the global economic system.